- On November 10, 2016
Get What You’re Paying For: SaaS Your Solution to Deliver real value over Increasing Maintenance Fees
During the past eight years the Maintenance Fees you pay for SAPs have increased from 16 or 17% up to 22 to 24% (or more) of your initial software license price. However, most CEOs and business owners agree: the value of those updates and improvements to software has not kept pace with this increased end-user cost. In fact, in the case of legacy ERPs, updates have stopped altogether.
To combat this increasing expense, many organizations have dropped original maintenance contracts with their software providers, and choose instead to work with third party maintenance companies. While these third party vendors cost the organization less, return on this annual investment is still very low. While third parties can keep software functioning, they usually cannot improve and update it so that it keeps pace with the ever-changing business environment and challenges. So, while there are savings, the software gains are paltry.
There is a much better solution to increasing maintenance fees: Software as a service (SaaS)
SaaS is a software licensing and delivery model in which software is licensed by annual subscription, accessed at a cloud-based host, and maintained by the application developer. The benefits of this model include:
- Maintenance-Free Applications. Because maintenance is managed by the cloud-based application development firm, SaaS requires no hardware installation or time-consuming software updating.
- Increased Productivity. SaaS applications are available to you when you need them– guaranteed. In fact, terms and conditions related to compensation for outages are included in SaaS providers’ agreements.
- Reduced Employee Training. Studies have shown that employees find SaaS applications more convenient to use than licensed, in-house software applications, and they require very little training to use.
- Ongoing Updates and Upgrades. Because the SaaS application developer manages all updates and upgrades, you are assured of using the most recent version of your application.
- Enhanced mobility and efficiency. Because SaaS applications are hosted on the cloud, you can access them from any internet-enabled device, including smart phones, laptops, and tablets. The data you need is available when you need it, anywhere in the world simply by connecting to the Internet.
- Improved Security. Cloud-based data security is better than most onsite data centers. SaaS application providers use the most stringent, cutting edge security tools to keep your data safe.
- Automatic Backups. With SaaS applications, your data is automatically backed up daily and stored securely in several data centers off-site.
- Immediate Disaster Management. If your business is stuck by natural or unforeseen physical disaster, you are ensured immediate disaster recovery of your data. Your data is stored on “data farms” in multiple locations to help ensure your data integrity, whether your office is hit by lightning or a fire breaks out in the break room.
The savings and benefits of cloud-based SaaS applications are tremendous. Not only does your organization save money on annual maintenance fees, reduced employee training, enhanced IT security, and increased productivity, but your applications are kept secure, up-to-date, and fine tuned so that you’re always using the best version possible.
At Tangicloud, we offer SaaS accounting applications for nonprofits and governments. We’ll help you move to the the security and cost effectiveness of the cloud. Contact us for information: firstname.lastname@example.org.